Stamp duty in Cyprus no longer applies to property contracts signed from 1 January 2026. The change was introduced by Law 239(I)/2025 as part of the wider tax reform passed on 22 December 2025, and it removes a cost and an administrative step that buyers and sellers had dealt with for years. Here is what changed, what did not, and what it means if you are signing a property sale agreement as of September 2026.
Stamp duty in Cyprus: what changed on 1 January 2026
Law 239(I)/2025, published in the Official Gazette on 31 December 2025, repealed the stamp duty laws with effect from 1 January 2026. As a result, documents signed from that date are not subject to stamp duty, and that includes property sale contracts.
The Tax Department set out how the repeal applies in announcements issued in January 2026, which KPMG summarised in its report on the repeal of the Cyprus stamp duty laws.
Before the reform, contracts stating a value, including property sale contracts, attracted no stamp duty up to €5,000, 0.15% on the value from €5,001 to €170,000 and 0.20% above that, capped at €20,000. For contracts signed from 2026, no stamp duty calculation or stamping procedure is required.
| Signed (by at least one party) by 31 December 2025 | Signed from 1 January 2026 | |
|---|---|---|
| Stamp duty on property sale contracts | Nil up to €5,000, then 0.15% and 0.20%, capped at €20,000 | Not payable |
| Stamping procedure | Governed by the old law | Not required |
| Legal basis | Previous stamp duty legislation | Law 239(I)/2025 |
Contracts signed before 2026 follow the old rules
The date of signing is what matters. According to the Tax Department, documents signed by at least one of the parties by 31 December 2025 remain subject to stamp duty under the old law and should be stamped under the previous procedure, even if the sale completes or the title transfers later.
If you signed a property contract towards the end of 2025 and are not sure whether stamping was dealt with, raise it with your lawyer. It is a simple question to settle now rather than at a later stage of the purchase.
The same logic applies to related documents. An addendum or a new agreement signed in 2026 is a document signed from 1 January 2026, but how it relates to an earlier contract can depend on its wording. Where an older contract is being amended, replaced or assigned, your lawyer is best placed to say which rules apply.
What the stamp duty change does not affect
Abolishing stamp duty is welcome, but it is only one part of the costs of a purchase. Several other rules are unaffected:
- VAT on new homes. New property from a developer is generally subject to 19% VAT, or 5% for an eligible main residence. See our guide to reduced VAT on your home in Cyprus.
- Land Registry transfer fees. No transfer fees are due where VAT was paid on the purchase; where VAT is not payable, the fees apply with a 50% reduction.
- Capital gains tax. Sellers remain subject to capital gains tax rules, which were also updated for 2026.
- Legal due diligence. The checks that protect you as a buyer are just as important as before.
For the full picture, including an illustrative transfer fee calculation, read our breakdown of the cost of buying property in Cyprus in 2026.
“One less tax to pay does not mean one less thing to check. Take independent legal advice before you sign, whatever the date on the contract.”
John Theodorou Group
Why the property contract still deserves careful attention
With one fewer tax to calculate, it can be tempting to see the contract as a formality. It is not. The sale agreement sets out what you are buying, the price and payment terms, and the obligations of each party.
Standard legal advice in Cyprus is to appoint an independent lawyer before signing. Your lawyer can search the Land Registry for mortgages or encumbrances, check the planning permit and the certificate of final approval, and confirm whether separate title deeds exist. Once signed, the contract should be deposited at the Land Registry for specific performance, which helps protect your right to have the property transferred to you. The Department of Lands and Surveys advises depositing it within six months of signing; otherwise, the transfer fees payable later are increased by 10%.
Our earlier article on property contracts in Cyprus explains the main clauses to look for, although its section on stamping no longer applies to new contracts, and our guide to the process of issuing title deeds in Cyprus covers what happens after the sale. The Department of Lands and Surveys portal is the official source for Land Registry services.
What it means for off-plan purchases
Many new homes in Limassol are sold before construction is complete, with payments linked to stages of the build. Because the abolition applies to documents signed from 1 January 2026, a sale contract for an off-plan property signed from that date is not subject to stamp duty either.
What has not changed is the importance of understanding the payment schedule, the specification and the handover terms before you sign. Our step-by-step guide to buying off-plan property in Cyprus walks through these points.
Frequently asked questions
Do I pay stamp duty on a property contract signed in 2026?
No. Law 239(I)/2025 repealed stamp duty from 1 January 2026, so documents signed from that date, including property sale contracts, are not subject to it.
What if I signed my contract in December 2025?
According to the Tax Department, documents signed by at least one party by 31 December 2025 remain under the old law. Ask your lawyer to confirm how it applies to your contract.
Does the change reduce VAT or transfer fees?
No. VAT and Land Registry transfer fees are separate and follow their own rules, which were not changed by the abolition of stamp duty.
If you are preparing to sign for a new home in Limassol and would like to understand the process, our team offers purchase guidance as part of our services. Contact us and we will be glad to help.
This article is for general information only and reflects our understanding of the rules as of September 2026. It is not legal, tax or financial advice. Rules change, so please confirm the details with an independent lawyer or tax adviser before making decisions.
